The Best Contractor Accounting Software

Generally, contract retainage is specified in the contract and is a percentage, typically five to 10 percent, of the total contract amount. For pricing, we looked at the starting price for the software and whether the company was transparent with its pricing. Those offering transparent pricing fared better than those forcing you to provide data to get a custom quote. We also looked at the range of costs between the various pricing tiers that a provider offered and the value that those plans offered to users. This software platform is best for contractors seeking detailed bids from subcontractors and vendors to have the most comprehensive preproject data. See if you’re on track with the report designer that bookkeeping for general contractors allows you to customize construction reports and financial statements.

Benefits of Outsourcing Bookkeeping Services

It also retains information about POs, time worked and equipment usage for specific sites. If you want to unlock advanced estimating and bill management, you will want the Advanced plan for $699 per month. The average hourly rate for an accountant in the U.S. is about $35, making it quite affordable for the average owner. However, these rates may vary depending on the size of your company, the number of jobs and employees you manage, and your unique needs.

• However, the nature of construction companies makes how these businesses recognize revenue more complicated.
• You’ll be able to use it like a pro in no time—no accounting knowledge necessary.
• And gain insights that’ll help you run your job sites like clockwork.
• This method of accounting tracks income and expenses along with the job they relate to.
• This included features, such as offering quotes and estimates, job costing, PO management, budgeting, billing and invoicing and accounts payable (A/P).

Track Every Second of Your Precious Time

• Choose one that seamlessly matches them to the proper accounting category, banking details, and credit card information.
• This means you can get any detailed report that you can think of with just a couple of clicks, helping you manage all the project costs.
• Construction payroll wages can vary greatly depending on the location of the job, the size of the job, and the individual skill level of the employee.
• Record electronic signatures for approvals and use the cloud-based document storage tool to keep everything you need one click away.
• Seizing opportunities or predicting problems is almost impossible if business records are stored in a box, a drawer, or a folder.

That’s why so many in the industry are now on the lookout for the best accounting software for construction. When used properly, it can streamline your day-to-day financial processes, help you manage project costs more efficiently, and improve your efficiency across the board. In this guide, we’ll review the top construction accounting software to use in 2025. The cash method of accounting for contractors is a system that records all cash transactions when they occur.

Unlock the true potential of your contracting business

Our mission is to provide builders, developers, GCs, and specialty contractors the precision accounting services they need to aggressively grow their businesses and their bottom lines. Prices can vary greatly depending on the kind of software you’re using, though most offer low-price plans to get started. Construction accounting software rates can start from as low as $17/month or up to $140/month for more advanced plans.

• These cost heads are subdivided into countless categories depending on the type of construction.
• We also weighted the number of responses, giving higher scores to providers that had at least 300 positive reviews to help reduce bias.
• This can make it difficult to track expenses and effectively calculate the profit generated from each service category.
• Sage Intacct Construction and Sage Intacct Real Estate is designed for contractors and owners to be able to manage properties and projects effectively.
• Effective bookkeeping for general contractors not only ensures compliance with legal and tax requirements but also provides valuable insights into your company’s financial health.

Explore what you can do with QuickBooks

This may include service work, design services, consulting, engineering, sourcing materials, and more. The more clarity you can get in your actual construction overhead and profit numbers, the better equipped you’ll be to meet your goal net profit percentage. And when you’ve got that under control, you’re free to grow your business to new heights.

Together, these two systems give a construction company a holistic view of its finances. Job costing helps maintain organization in the construction accounting process since the accounts related to individual projects are kept separate from the centralized accounts. Construction accounting also includes the management of accounts receivable and accounts payable, cash flow, and the reporting of financial information. This article will introduce construction accounting, including the key principles and techniques for managing your construction business.

Understanding Financial Statements

When choosing a construction accounting software platform, there are three areas of consideration that you should consider. You want a platform that fits your overall budget and provides as much value without needing to upgrade with other subscriptions or customized solutions. You’ll be able to get into the weeds with budget management tools that allow you to go from budget to change order requests instantly. We dug into 14 of the top construction accounting software platforms on the market and found these 10 to be the best. Our ratings consider starting price and the overall price range for all software tiers as well as the depth and number of available features, customer reviews and a deep dive by our experts.

Proactive Bookkeeping Services

Most Builders and Remodelers don’t have a handle on the finances of their business. Depending on your needs, integrations with other apps and software can help simplify your day-to-day life. Consider which apps you use already, and keep an eye on software with integrations. law firm chart of accounts With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.

• Bookkeeping involves the systematic recording, classifying, and summarizing of financial transactions within your business.
• Understanding these documents enables effective financial planning and project management.
• When used properly, it can streamline your day-to-day financial processes, help you manage project costs more efficiently, and improve your efficiency across the board.
• This article will introduce construction accounting, including the key principles and techniques for managing your construction business.
• This accounting method is great for small construction businesses that don’t have a high volume of sales or complex transactions.
• When in the project management segment, you can incorporate quality and safety standards, have design coordination and oversee the entire project.

The 11 Benefits of a Precision Accounting System

Bookkeeping involves the systematic recording, classifying, and summarizing of financial transactions within your business. When you have accurate financial information that you really understand, you have the tools and confidence you need to unlock the true potential and profitability of your construction business. We’ll give you accounting, payroll, reports, and CFO services you and your team need to have an in-depth understanding of the financial performance of your construction business. Sage was the standard accounting software for general contractors for a long time, but it’s lost balance sheet popularity as other platforms have become available. It’s a more affordable option than some others, but that also comes at the cost of some of the deeper, more insightful analytics and data you may need.